Economic Impacts Of Climate Change Research Articles

Climate change and economic growth: Evidence for European countries

AbstractClimate change may affect economies and the welfare of people around the world. To design appropriate policy responses, the economic effects of climate change should be known. One strand in the literature empirically estimates the growth effects of climatic variations. However, those studies often neglect economic variables that have proven to be robust in explaining economic growth. Further, often they fail to check for the robustness of their results. The main aim of this study is to detect whether there exists a statistically significant robust relation between climate change and economic growth by estimating different model specifications. To do so panel estimation techniques for 24 European economies for the period from 2002 to 2019 are applied whereby panel fixed effects estimations and dynamic Generalized Methods of Moments estimations are resorted to. No statistically significant robust relationship between the temperature change and economic growth is found just as for precipitation that does not exert a significant effect on growth. As regards the institutional and macroeconomic control variables the rule of law, the fiscal variable, and the output gap are statistically significant and robust. It is argued that far‐reaching policy measures, such as the net zero goal of the European Union, should be given only based on robust results. Otherwise, economic policy may turn out to be inadequate and can lead to welfare losses. Hence, the conclusion is that the net zero goal of the European Green Deal is to be seen skeptical.

Impact of climate change risks on equity capital: Evidence-based on Chinese markets

The economic consequences of climate change at the enterprise level have received considerable attention. This study examines the positive effects of climate change risk on equity capital costs, which are realized through firms' operational risk, financial constraints, and the government's service environment. A higher corporate ESG rating enhances the positive effect of climate change risk on equity capital costs. We also find that the Paris Agreement has a benign policy effect on equity capital costs. Finally, expanding upon this groundwork, a thorough heterogeneity analysis has been conducted, encompassing three distinct dimensions—enterprise risk system, industry environmental attributes, and operational ecosystem.

Regional aggregation bias in the global computable general equilibrium model: Issues in assessing the economic impact of climate change and trade liberalization

This study examined the bias introduced by regional aggregation (RA) when assessing the effect of climate change and trade liberalization through computational experiments. The analysis used global computable general equilibrium models with different pre-aggregation levels, based on the GTAP10 database. The bias was quantified by comparing the effects between large-scale and aggregated models. The results revealed that RA bias comprised over 35% of estimated effects related to climate change and global trade liberalization; it reversed the change direction in the simulation and deviated changes beyond the variation range observed in the sensitivity analysis; and it increased in developing countries where the proportions of imports were high. Much RA bias is artificially created by aggregating countries with different initial shocks, which then spreads to other countries through a pseudo-trade structure. Therefore, adopting a disaggregated global model is crucial to improve the accuracy of climate change assessments with diverse shocks worldwide.

Quantitative Easing and Climate Change: A Case Study

In the context of increasing global climate change, this article takes an in-depth look at how central banks can use quantitative easing to help address this issue. Based on three research methods: Green Bond, SDGs Bond, Carbon Trading Market and Carbon Reduction Project, this paper analyzes the pros and cons of specific measures of quantitative easing in dealing with climate change. The study found that the above three types of quantitative easing policies can effectively guide funds to green industries, promote green economy and sustainable development, and thus mitigate the economic impact of climate change. This research not only provides a new perspective for central bank policy making, but also provides investors with new opportunities for green investment. This paper suggests that the central bank should increase its support for green projects when formulating quantitative easing policies, and encourage investors to actively participate in green investment to jointly promote the response to climate change.

Climate change, causes, economic impact and mitigation

The earth and its environment is currently undergoing changes, which may be natural as a result of the earth’s processes or artificial, as a result of man’s activities that has altered the natural earth processes. Climate change is a result of the alteration of the atmospheric balance which in-turn has diverse effects on the earth’s processes and her inhabitants. The aim of this review is primarily to elaborate the climate change, the causes, economic impact and methods of mitigating climate change. The effect of climate change is massive but this article is targeted towards the economic impact of climate change and methods of eliminating this effect in this area. It is a universal challenge, it therefore requires universal attention. This article is a review work on the previous publications on climate change including journals and other articles that are closely related to this topic, it goes ahead to reveal the current situations and effect of climate change in our society today and scientifically proven means of mitigating such effects. Fossil fuels are by far the largest contributor to global climate change, accounting for over 75% of global greenhouse gas emissions and 90% of all carbon emissions. Human activities have warmed the atmosphere, ocean and land, producing widespread and rapid changes in the atmosphere, ocean, cryosphere and biosphere. The methods of mitigating climate change are primarily by reducing the use of fossil fuels in order to stop adding more CO2, Nitrous acid and methane (which are all greenhouse gases) to the atmosphere, by using more of renewable energy such as solar energy, geothermal energy, and hydroelectricity. Practicing better farming systems to improve crop yield other than using harmful chemicals. Implementing policies against gas flaring, faulty automobiles discharging high amounts of carbon into the atmosphere, bush-burning, deforestation etc, should be practiced more.

‘Mitigation is global, adaptation is local’: An assessment of the framing of climate change in Nigerian and South African newspapers

The economic impact of climate change, especially in Africa, is tremendous. As Africans battle with severe weather conditions like floods and droughts, their limited infrastructure is overstretched and, in most cases, cannot withstand the impact. The rains are flooding cities in Nigeria as drought ravages cities in South Africa. When events like these occur, people look to the media for information, and studies have shown that the media can influence public perception of climate change through the way they frame the issue. Using the issue-specific frames of mitigation and adaptation, this study analysed Nigerian and South African newspapers’ coverage of climate change. The study spanned 9 months (January-September 2018), and the online editions of The Punch, Leadership, Mail & Guardian and News Everyday were content-analysed quantitatively using tables and frequencies, and qualitatively, using verbatim quotes. A total of 90 stories were obtained from the four newspapers, with the straight news format as the most used story genre. The major sources of news stories on climate change were the reporters, followed by experts/private individuals. The adaptation frame was the most used, showing that the African media understands the need to mobilise citizens locally for a collective fight against climate change.

Unravelling the economic impact of climate change in Vietnam's Mekong River Delta and Southeast region

Vietnam faces a heightened susceptibility to natural disasters stemming from climate change, yet the impact of these disasters varies markedly across its regions. Consequently, it is imperative to scrutinize the climatic factors affecting the regional economy, with a particular dearth of research addressing the nexus between natural threats and the economies of the Mekong River Delta and the Southeast region of Vietnam. The primary objective is to investigate how temperature fluctuations, rising sea levels, storms, and forest fires can detrimentally affect agriculture, forestry, and infrastructure in these regions. The present research uses the secondary data from Vietnam's General Statistics Office and the German Agency for International Cooperation. Employing quantitative analysis, the study endeavours to assess and compare the influence of climate change elements on the economic trajectories of the Mekong River Delta and the Southeast region. The findings reveal that the Mekong River Delta is disproportionately impacted by economic losses attributed to rising sea levels when juxtaposed with other regions in Vietnam. Firstly, the escalating sea levels significantly jeopardize residential and agricultural land in the Mekong River Delta (1). Secondly, while wildfires inflict damage on forestry in both the Mekong River Delta and the Southeast area, their overall impact is deemed negligible (2). Thirdly, the study ascertains that houses in the Mekong River Delta and the Southeast region remain relatively unscathed by storms (3). However, it is noted that specific storms have inflicted substantial damage on both regions (4). In light of these findings, future research should delve deeper into the analysis of storm risks in the Mekong River Delta and the Southeast region. Such insights are crucial for enhancing our understanding of the vulnerabilities and devising effective strategies to mitigate the economic repercussions of climate change in these pivotal areas.

Economic impacts of climate change on forests: a PICUS–LANDIS–CGE modeling approach

Climate change is expected to alter both forest stand- and landscape-level dynamics through a change in environmental characteristics. While numerous studies have employed models to assess the ecological and/or economic impacts of such changes on forests throughout the world, there is need to further refine such analyses. In this paper, we contribute to this literature by coupling an ecological (PICUS–LANDIS II) modeling framework with an economic (computable general equilibrium) model to better account for the economic impact associated with climate-induced impacts on forest stand- and landscape-level structure and composition dynamics. Applying this framework to a case-study region of New Brunswick, Canada, we estimate that climate change will reduce softwood supply by 16%–73% and impact hardwood supply in the range of −2% to +4% by 2150. The change in wood supply is estimated to reduce the value of the softwood and hardwood forestry and logging sector output by up to 51% and 17%, respectively, by 2150. These sector-level impacts may lead to a 0.08%–0.88% reduction in annual gross domestic product by 2150. The methodological advances established in this study can be used to better inform future forest management and economic plans that aim to lessen both the ecological and economic impact of climate change.

Mind the gap between the economic effect of climate change and the reality

Climate change increases its severity day by day and poses a great threat to our world. Climate change problems almost cause the global economic system to be questioned. This issue is also very important for China, India, Brazil, Russia, Indonesia, Mexico and Turkey, which are expressed as E7 (developing) countries. Climate change forecasts for many countries predict that temperatures will rise as precipitation increases or decreases. Technological improvements are predicted to play an important role in mitigating and adapting to the negative consequences of climate change. This study aims to determine the effect of climate change on the economic growth of E7 countries between the years 2004-2021 using panel data methods. Analysis was done with the Stata 15 program. In the study, firstly, the literature on climate change and economic growth is included. Afterwards, the economic consequences of climate change are discussed. In the following section, solutions that will be effective in combating climate change are explained. Then, the empirical analysis and the obtained findings were included and the study was concluded with the conclusion and evaluation. All variables are statistically significant. Accordingly, while temperature and precipitation negatively affect GDP; Urbanization, population growth and HDI positively affect GDP. According to the consequences of the analysis, it was concluded that climate change negatively affected economic growth.

Investigating the economic impact of climate change on agriculture in Iran: Spatial spillovers matter

AbstractIn this study, we enhance our understanding of the economic impacts of climate change on agriculture in Iran to provide further information for moving Iran's climate policy forward by linking farmland net revenue to novel climatic and non‐climatic variables. We take advantage of spatial panel econometrics to better circumvent omitted factors extraneous to the agricultural sector and to develop a more reliable and consistent model when data are inherently spatial. In contrast to conventional panel studies which relied on year‐to‐year weather observations, we exploit a hybrid approach to compromise between the disadvantages and advantages of longer‐term cross‐sectional analysis and shorter‐term panel models. We estimate the potential impacts of climate change on agriculture under several global warming scenarios based on the Sixth Phase of the Coupled Model Intercomparison Project (CMIP6). We find that (I) farmlands’ net revenues are projected to decline by 8%–19% and 14%–51% by 2050 and 2080; (II) the distributional impacts of climate change would highly depend on climate zones and geographical locations; (III) a few counties might benefit from climate changes; (IV) finally, failing to account for spatial spillovers when they are present leads to a misspecified model.

Economic Impacts of Climate Change in the Arab Countries with Reference to the Kingdom of Saudi Arabia

Economic Impacts of Climate Change in the Arab Countries with Reference to the Kingdom of Saudi Arabia

Potential Economic Impacts of Climate Change on Water Resources

Potential Economic Impacts of Climate Change on Water Resources

Economic impact of climate change in Guatemala

Economic impact of climate change in Guatemala

A meta-analysis of the total economic impact of climate change

Earlier meta-analyses of the economic impact of climate change are updated with more data, with three new results: (1) The central estimate of the economic impact of global warming is always negative. (2) The confidence interval about the estimates is much wider. (3) Elicitation methods are most pessimistic, econometric studies most optimistic. Two previous results remain: (4) The uncertainty about the impact is skewed towards negative surprises. (5) Poorer countries are much more vulnerable than richer ones. A meta-analysis of the impact of weather shocks reveals that studies, which relate economic growth to temperature levels, cannot agree on the sign of the impact whereas studies, which make economic growth a function of temperature change do agree on the sign but differ an order of magnitude in effect size. The former studies posit that climate change has a permanent effect on economic growth, the latter that the effect is transient. The impact on economic growth implied by studies of the impact of climate change is close to the growth impact estimated as a function of weather shocks. The social cost of carbon shows a similar pattern to the total impact estimates, but with more emphasis on the impacts of moderate warming in the near and medium term.

Economic Impact of Climate Change on Agriculture: A Study of India and its Neighbouring Countries Using ARDL Approach

This study aims to analyze the association between the share of agriculture in GDP and changes in climatic variables, notably per capita CO2 emissions and temperature change, using time series data of India, Bangladesh, and Nepal for the period 1961-2018. The ARDL bounds testing method was applied to analyze the relationships among the research variables for both short-term and long-term. The results revealed that in the long run, per capita CO2 emissions and temperature change have no statistically significant relationship with India and Nepal’s share of agriculture in GDP. However, temperature change has demonstrated a positive and statistically significant relationship with the share of agriculture in Bangladesh’s GDP. Temperature change has a significant and adverse impact on the share of agriculture in India’s GDP in the short run, whereas CO2 has no significant effect. In the short run, CO2 shows a positive and significant connection with the share of agriculture in Bangladesh’s GDP. Still, temperature change is negatively and significantly associated with the proportion of agriculture in the nation’s GDP. Different lag values of both CO2 and temperature change have significant relationships with the share of GDP in agriculture in the short run in Nepal. As agriculture is a key source of GDP for all three countries, it is vital to implement suitable policies and make plans and strategies to mitigate climate change’s harmful consequences in agriculture.

Economic consequences of climate change impacts on South Asian agriculture: A computable general equilibrium analysis

AbstractSouth Asia is one of the most vulnerable regions of the globe in terms of climate change, with agriculture the most affected economic sector of the region. This study employs an environmental Global Trade Analysis Project model to simulate the impact of an average global 2°C temperature increase by 2050, with a focus on South Asian countries. The economic costs of climate change in relation to crop productivity losses due to increasing temperature, land productivity losses caused by rising sea levels and heat stress‐induced agricultural labour productivity losses are assessed based on model simulations. The results show that the unfavourable climate change impacts on agricultural productivity (crop, land and labour) will reduce food production and create upward pressure on food prices. This will lead to a reduction in food consumption at the household level, threatening future food security in the region. The results further predict a contraction in all South Asian economies by 2050, due to adverse climate change impacts on the agricultural sector. In addition, out of the three climate change damage factors considered, labour productivity causes the greatest economic losses, while land productivity losses caused by rising sea levels impact the least. The study also found that low‐income countries would suffer most severely due to the impacts of climate change on the agricultural sector, while high‐income countries would be impacted the least.

Economics Impact of Climate Change on Agriculture GDP in Bhutan: Empirical Evidence from ARDL Approach

This paper examines the economic impacts of climate change on agriculture in Bhutan. It focuses on the significance of the agriculture sector in Bhutan and analyzes the economic effects of climate change using the Autoregressive Distributed Lag (ARDL) model. The dependent variable used in the ARDL model is agriculture GDP, while the independent variables are temperature and rainfall. The ARDL model is employed to assess the short-run and long-run economic impacts of climate change on agriculture. The results of the study indicate that the agriculture sector has consistently contributed the highest GDP from 2009 to 2020 in Bhutan. Additionally, it has provided the most significant employment opportunities compared to other sectors between 2009 and 2019. The ARDL model results demonstrate that in the short run, the coefficient for temperature is positive at 0.16, and the coefficient for rainfall is 0.5, indicating that climate change has a positive impact on agriculture GDP. However, in the long run, the ARDL model reveals a negative impact of climate change on agriculture GDP. The coefficient for temperature is -11.2, and for rainfall, it is -1.13. These findings underscore the urgent need for measures to address the challenges posed by climate change. The paper recommends raising awareness about climate-smart initiatives and programs among stakeholders. Additionally, training and the adoption of climate-resilient seeds and techniques are necessary to mitigate the adverse effects of climate change on the agriculture sector.

Research topic identification and trend prediction of China's energy policy: A combined LDA-ARIMA approach

Identifying the research topics of China's energy transition policy and predicting future research trends are crucial for policymakers to make informed decisions and advance the energy transition. This study applied the Latent Dirichlet Allocation (LDA) to extract 26 major research topics from the 13,976 abstracts of Chinese policy research papers in web of science (WOS), conceptualized the five most popular topics and used the ARIMA model to predict trends over the next 36 months. The results show that except for Economic and Environmental Impact of Renewable Energy Consumption (Topic13), which will first experience unanticipated fluctuations and then show strong growth capacity, all other topics will continue to remain positive growth trend. Research and Development (Topic3) is driven by the urgency of China's energy transformation. Economic and Environmental Impact of Renewable Energy Consumption (Topic13) is driven by the potential for the development of renewable energy. Economic Impact of Climate Change (Topic26) is driven by the climate change debate. Economic Growth, Urbanization, and Energy Consumption (Topic7) is driven by a discussion of their relationship and the mechanisms influencing them. Regional Efficiency and Productivity Analysis (Topic19) is driven by regional differences in China's energy policies.

Measuring the impact of regional climate change on heating and cooling demand for the Chilean energy transition

The regional impact of climate change on heating and cooling demand is important to consider when designing optimal long-term energy policies. Several studies have addressed this issue, but either at a very aggregated level or without optimizing the whole energy system. The aims of this paper are to fill this gap in a generic way and to assess the impact of climate change on heating and cooling energy demands for residential and commercial sectors at the regional and nodal levels in the context of Chile’s energy transition. We propose a methodology based on high resolution climate simulations for the Representative Concentration Pathways (RCP) RCP 2.6 and RCP 8.5 scenarios. First, a statistical analysis is performed to estimate the long-term trends of so-called heating and cooling degree-days and their impact on final regional energy demands. Then, demand pathways in the energy transition are assessed using a multi-sectoral energy planning model. Numerical experiments using data from Chile show an overall positive economic impact of climate change (limited to heating and cooling demands) for the energy system, with a significant decrease in heating demand compared to a limited increase in cooling requirements. For the RCP 8.5 scenario, cost reductions reach 2.1% of the total discounted system cost on the 2020-2050 period mainly due to a significant decrease of gas consumption for heating. This research highlights the importance for policymakers to consider climate change in efficient energy policies.

Examining the Social and Economic Impact of Climate Change on Rural Communities and the Role of Global Governance in Addressing These Challenges

This study examines the impacts of climate change on rural communities, specifically in the areas of agriculture, forestry, fisheries, and natural resources. The study highlights the challenges faced by these communities in terms of social welfare, economic growth, infrastructure development, and environmental sustainability. Global governance is also mentioned as an important factor in addressing climate change challenges. The study finds that rural populations heavily depend on these sectors, making them vulnerable to extreme weather events such as increasing temperatures, storms, floods, and droughts. This vulnerability leads to various social and economic challenges, including crop failures, harm to livestock, and infrastructure damage.